Stunned bank stocks make gains as Fed comes into focus

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Investors took some heart from the rescue of troubled lender Credit Suisse by its Swiss rival UBS, though concerns lingered about the risk of shockwaves further damaging credit markets and smaller U.S. banks

takeover of Credit Suisse by its rival UBS, attention has shifted to this week's meeting of the U.S. Federal Reserve.

Yellen said she was committed to taking actions that would mitigate risks to financial stability and taking necessary steps to ensure the safety of deposits and the U.S. banking system.of U.S. lenders Silicon Valley Bank and Signature Bank triggered the demise of 167-year-old Credit Suisse and investors are concerned about potential financial time bombs ticking elsewhere in the system.

"We should also feel secure in the fact that the authorities that have the job to deal with this are working closely together and are working with the government. So there is good capacity to act should this head into another phase," Theeden said. Earlier, he had warned banks against being "caught off guard" by rising interest rates, in remarks the ECB said were drafted in February, before recent market upheavals., the ZEW economic research institute said.

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